Entrepreneurial Opportunity Analysis: Travel XP's Business Strategies

This report provides an analysis of the entrepreneurial opportunity presented by Travel XP, a UK-based travel company. It delves into the company's innovative business strategies, particularly its use of EMI (Equated Monthly Installment) travel plans to attract a wider customer base, including young people and newly married couples. The report explores entrepreneurial themes such as opportunity creation and recognition within the travel and tourism sector, examining how Travel XP differentiates itself from competitors by offering unique services and affordable prices. It also outlines the company's approach to business idea development, including market research, prototype development, and operational planning. The report also highlights the importance of understanding customer needs and preferences, as well as the strategies employed by Travel XP to reach and engage with its target audience through various communication channels. Finally, the report discusses the resources required to implement the company's business idea and the rationale behind its focus on solving the travel-related challenges faced by the younger generation.

ENTREPRENEURIAL
OPPORTUNITY

Table of Contents
INTRODUCTION...........................................................................................................................1
ENTREPRENEURIAL THEMES...................................................................................................2
BUSINESS IDEA DEVELOPMENT.............................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Entrepreneur is a person who develop a business idea and take entire risk to gain
maximum revenue. He is a creative thinker and do his work in an innovative manner. He takes
decision by his own and arrange fund for business on his own hands (Koçoğlu, Akgun and
Keskin, 2017). Travel and tourism sector is growing continuously and provides employment
opportunities to people. In United Kingdom, there is an organisation named, Travel XP is
enlarging their business by utilizing new and unique ideas. This will aid them to take benefits
from their rivals at competitive world. They are providing best and effective services to their
clients which cater them more satisfaction. Company is giving an impressive facility to their
users that they can adopt a travel plan by using the option of EMI. Therefore, there is no need to
pay entire amount at a single time and clients will pay it within six months or one year. This is
much effective option and help to attract numerous clients towards them. As a result, they can
enhance their goodwill and profits in a proper way. Along with this, it will be easy for them to
compete their competitors at marketplace. There are many competitors of Travel XP in country
and no one is opting EMI into their business. Thus, this thought or idea make them unique which
assist them to improve their customer base.
Needs and demands of each and every people is different from each other. Hence, it is
required for manager to know their requirements so that they can satisfy them within a specific
period of time. There wants will different as per their age, but basically organisation wants to
target newly married couple, students and youngsters. The option of EMI is better for them as
there earning is not much high. This segment is much energetic as compare to others will spend
sufficient amount of fund into their travel. Along with this, they want to explore many places
with their friends (Gaglio and Winter, 2017). Thus, Travel XP is giving them a option of EMI
where they do not have to total amount at a single time.
The thought of EMI is totally different and will attract numerous individuals towards
them. Apart from this, there services are much effective and unique. Prices of it is affordable
which will aid them to compete with their competitors at marketplace. They also utilize new and
innovative ideas into their business which make them different from others. There are many
consumers of firm, such as youngsters, married couple, families and many more.
There are many kinds of strategies followed by an association to reach to their clients. In
modern era, they will use some social sites; so that, they can convey their message to them.
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Along with this, to make regular contacts with their users they will use email, phone calls,
messages. With assistance of these, they can share their new schemes or offers with them. There
are many people who never use social sites; therefore, company has to utilize print media
(Chandra, 2017).
It is essential for each and every sort of firm to know needs and wants of their users. This
will aid them to take benefits from their competitors at competitive world. For above stated
purpose, manager of an enterprise will conduct research as this will assist them to know about
their client's needs; hence, they can accomplish it within a specific period of time. A
questionnaire will be prepared by them which will contain some questions. Apart from this, they
will take feedback from their consumers through which clients will provide some suggestions as
well as recommendations to Travel XP. This is the best method to know about requirement of
people. Instead of this, they will conduct an interview session with customers which is entirely
private. Individuals will give their feedback on online sites also as this will be more convenient
for them. As a result, organisation will accomplish demands or request of their consumers within
limited period of time.
Every kind of people want quality services at a affordable price. Enterprise is targeting
young generation, newly married couple and many more. As these kind of people do not have
proper amount of fund and they want to explore many new places at a affordable prices (Wood
and Mckinley, 2017). Therefore, an option of EMI is giving to them by employer of Travel XP
which will help them to visit any place at any where they want at a reasonable value. By opting
this option, they will pay the amount in installments which is much suitable for them. As this
method is totally unique and there competitors are not using it. As a result, it helps them to
improve their profits as well as goodwill at marketplace. Additionally, they will maintain their
customer base and will pull numerous clients towards them.
ENTREPRENEURIAL THEMES
Opportunity creation is much associated with entrepreneurial process. As he is an
individual who do his business according to him. He is responsible to take entire risk as well as
revenue which is related to his business. Therefore, in similar context, he has to develop
opportunities for his firm; thus, by getting them he will improve profits and reputation of
company at marketplace. An unique thought is created by him i.e. EMI, which assist him to take
benefits from their rivals. As indicated by opportunity creation, manager has to solve current
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issues and convert them into upcoming solutions. Apart from this, they will also develop some
offers for those persons who do not want to opt an option of EMI (Beugré, 2017). This will aid
them to attract more persons towards them. Travel XP always come up with an exciting offers as
well as ideas which make them best as compare to others. Before creation of a chance, it is
required for manager to conduct a survey to know needs and requirements of people. If they
accomplish their demands according to them on time then, this will be easy for them to improve
their customer base. By combine many things together an employer will easily acquire maximum
opportunities at market.
Opportunity recognition is a fundamental factor which is much associated with procedure
of entrepreneurial. Most important quality of a business person is that they always recognized
those chances which are accessible for them at marketplace. It is essential for them to test
opportunities which they want to obtain. There are some elements which will include in process
of opportunity recognition, such as Preparation, incubation, insight, evaluation and elaboration,
which is provided by Wallas. Manager recognizes that trend of travel and tourism is increasing
continuously (Opportunity recognition, 2017). Therefore, individuals want to explore more new
places which will provide satisfaction to them. Travel XP is providing services to their clients at
affordable prices or will give an option of EMI to them. This helps to develop their interest to
visit some exciting places. As trend of this sector is growing rapidly; therefore, there are many
courses developed by government in this relation. Instead of all of this, they continuously apply
new thoughts or ideas into their business which aid them to survive long term at market. It will
provide more strength to them which assist them to compete their competitors at competitive
world. It is also essential for them to know requirements of their clients as their taste and
preferences will change as per time passes. Apart from this, they will give some extra offers to
their customers as it makes them remind about company and they will never lose their consumers
(Alvarez and et. al., 2017).
It has been observed that there are many people who are not able to visit various places
because it requires much fund. Therefore, by considering this, an idea of EMI is developed by
manage and according to this, clients do not need to give entire amount at a single time. They
will pay to organisation within six months or one year as per their convenient. Apart from this, as
competition in travel and tourism segment is enhancing on continuous basis; thus, it is
fundamental for an employer to formulate some opportunities so that they can survive at market
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for longer period of time. If they do not use new and unique ideas then, they will loose their
clients which leads to huge losses.
Instead of this, they can modify their current plans or policies to make it more effective
as well as efficient. As needs and wants of people will change as per time passes; thus, it is
essential for manager to take their requirements into under consideration before developing a
thought. They can also encourage their staff members to provide their opinions and to remove
their hesitation employer has to keep up an open communication in an organisation (García,
Deserti and Teixeira, 2017). As there are various distinctive strategies are using by their
competitors and manager will study them and create their policies more effective as compare to
them.
Travel XP is targeting young people and newly married couples and they do not have
sufficient savings with them. Hence, they will give them an option of EMI so that they do not
have to give entire amount immediately, rather than this, they will pay it as an installments. This
will assist them to maintain their client base and in addition, they can pull some more individuals
towards them.
BUSINESS IDEA DEVELOPMENT
Many companies have different idea which can provide them huge revenue in upcoming
but their development is the main issues for them. Development of this idea had four stages. The
first one was to do the research about how to convert the concept into concrete form. This task
was done by making deals with different hotels and tour operators who are present in various
states of UK. The decisions regarding mode & timing of payment and services provided to the
customers are made in step (Davidsson, 2017). The next stage was development of a prototype, a
travelling plan was made in order to find the various elements of the business idea. This plan
contained various details about the services and product which will be given to the customer
along the process of registering with bank for EMI option. An operational process is then
developed in next step where the work relating to various operations is analysed and developed.
All the activities relating to marketing, like testing and launching is done in last step.
Operational plan provide the details about contribution of different departments in the
reaching strategic goals. TravelXP mainly has three division, one is customer services, marketing
and finance. First the budget of customers will be identified before suggesting them the right
option, this work will be done by customer service wing. This department will provide
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information about the dates and timing of various tours which is organised by company along
with the special offers and EMI program (Yangand Yang, 2017). The marketing division will do
the work of market research and make the strategies relating to advertising. Finance department
will basically concentrate on two main areas, first is lowering down the cost of packages and
making connections with different banks who can help them in creating a sound plan regarding
the EMI program. Various resources will be needed for bring this idea from paper to market. The
first requirement will be of manpower, more people are required in the organisation because the
number of customer will arise once the EMI program will enter in market. People with specialise
knowledge of finance will be selected for explain the EMI tour package option to the clients. The
requirement of financial resources will increase and company also have to buy some new soft-
wares for running their business smoothly. The reason behind developing this idea in stated way
is related to solving the problems of young generation relating to travelling. Money is the most
important hurdles which stop young generation from visiting different part of the country and the
whole idea is focused on companies long term goals and customer's demand i.e. affordable
service. EMI is the best option in present scenario for the young generations (Shepherd and
Patzelt, 2017).
Market research is done by the company in order to find whether the idea of taking
payment in instalment is profitable or not. The primary research is done by using questionnaire
and secondary is done by studying the data and information on internet and magazines about
market trend in travel and tourism sector. The marketing plan will focus on convince and
promoting the idea of affordable plans among young generation. TravelXP marketing plan
include the mix which will be used for connecting with potential and existing customers. The 4
Ps of marketing mix will be adopted by company, Product is the first P. In this case, the EMI
program of city company is their products and it has ability to to deliver the result according to
the exact expectation of the customers. The name of product will be ''Travel on EMI''. TravelXp
will adopt the strategy of price penetration in order to work on second P i.e. price. They are
offering great services at low price and the option of EMI will assist them in getting attention
from large number of customer across the Europe.
The place is the third 'P' in marketing mix, company is not going use options like
franchise because it will not suit their business model but they will position their product in a
way which is in the reach of every class of customer segment. 4th 'P' i.e. promotion will be done
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by using tools like online advertising and offer heavy discount. Although TravelXP is a new firm
and but their main competitors is multinational organisation who are operating in UK like
Thomas Cook (Koçoğlu, Akgun and Keskin, 2017). This company has many customers in UK
and they are financial sound. But they do not focus on innovation and their tour packages and
services are gradually getting outdated. This ''Travel on EMI'' is a innovative idea and it is
affordable. Most of students and young married couple cannot buy the tour options which are
very expensive, so this plan will easily gain popularity in short period of time. Around 1.3
million pounds will be required for initiating this business idea. 30% expenditure will be done on
paying the salary of the employees, 40% will be on promotion and marketing. The remaining
will be utilised for miscellaneous work. Because of the low cost of business and targeting high
sale profit can be made. According to the managers expectation, after staring of EMI
programme, the annual profit of company will be 25000 thousand pounds and this will grow at
the rate of 20%. Break even point will be attained in 4th year from now i.e. around year 2022
(Gaglio and Winter, 2017).
CONCLUSION
From above mentioned assignment it has been concluded that there are many
opportunities for an individual at market who wants to begin their business. As travel and
tourism sector is growing continuously; therefore, person can start their career into this. They can
implement new and unique ideas into their firm which aid to pull numerous people towards
them. In this assignment, there is a description about entrepreneurial themes, i.e. opportunity
creation and recognition. Instead of this, a business idea is developed which aid an organisation
to enhance their profits as well as reputation at marketplace. Along with this, it assists them to
compete their competitors at competitive world.
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REFERENCES
Books and Journals:
Alvarez, S. A. and et. al., 2017. On opportunities: Philosophical and empirical
implications. Academy of Management Review. 42(4). pp.726-730.
Beugré, C. D., 2017. A NEUROCOGNITIVE MODEL OF ENTREPRENEURIAL
OPPORTUNITY. Intelligence, Sustainability, and Strategic Issues in Management:
Current Topics in Management. 18. pp.17-42.
Chandra, Y., 2017. A time-based process model of international entrepreneurial opportunity
evaluation. Journal of International Business Studies. 48(4). pp.423-451.
Davidsson, P., 2017. Entrepreneurial opportunities as propensities: Do Ramoglou & Tsang move
the field forward?. Journal of Business Venturing Insights. 7. pp.82-85.
Gaglio, C. M. and Winter, S., 2017. Entrepreneurial Alertness and Opportunity Identification
3.0: Yes, We Can Talk Empirical!. In Revisiting the Entrepreneurial Mind. pp. 359-377.
Springer International Publishing.
García, L. M., Deserti, A. and Teixeira, C., 2017. Entrepreneurial design: the role of design as
driver of entrepreneurial opportunity generation and assessment. International Journal
of Entrepreneurship and Innovation Management. 21(1-2). pp.64-85.
Koçoğlu, İ., Akgun, A.E. and Keskin, H., 2017. The Role of Business Model Development in the
Ex-Post Creation of Online Entrepreneurial Opportunity. In Key Challenges and
Opportunities in Web Entrepreneurship. pp. 1-32. IGI Global.
Shepherd, D. A. and Patzelt, H., 2017. Researching the Generation, Refinement, and
Exploitation of Potential Opportunities. In Trailblazing in Entrepreneurship. pp. 17-62.
Springer International Publishing.
Wood, M. S. and Mckinley, W., 2017. After the venture: the reproduction and destruction of
entrepreneurial opportunity. Strategic Entrepreneurship Journal. 11(1). pp.18-35.
Yang, X. and Yang, P., 2017. Empirical research of entrepreneurial opportunity identification on
rural tourism. Tourism Tribune. 32(2). pp.89-103.
Online:
Opportunity recognition. 2017. [Online]. Available through: <https://bizfluent.com/facts-
7501598-opportunity-recognition.html>.
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